ShareAction: Review of investors’ duties a ‘major step forward’
ShareAction has welcomed Vince Cable’s announcement of the terms of reference for the Law Commission’s review of investors’ fiduciary duties.
The announcement, made as the Secretary of State appeared before a Select Committee inquiry into the Kay Review, represents the implementation of one of the Review’s key recommendations. The terms of reference will allow the Law Commission to fully investigate how to ensure that fiduciary duty acts in the best long term interests of beneficiaries.
Christine Berry, Head of Policy and Research at ShareAction, said:
“This is a major step towards ensuring that the law is no longer seen as a barrier to enlightened and responsible behaviour on the part of institutional investors.
“Fiduciary obligation should be the thread which keeps the investment industry connected to the needs of the people whose money they manage. It should not be seen as a straitjacket demanding the pursuit of short-term profit at any cost.
“There is clearly genuine political will to resolve this problem as soon as possible, and we look forward to engaging with the Law Commission to help achieve this.”